Britain at risk of worse deficit crisis than Greece in the EU

February 19, 2010 by · Leave a Comment
Filed under: Currency News 

The Euro has been taking a beating after the news of Greece did not seem to calm investors and now these numbers from the UK showing there deficit is going to be even larger than projected this year.  With this waning confidence in all other currencies and strength in the U.S. dollar, it is looking more and more likely that we are not seeing a recovery and instead this bear market rally is over and now it might be time to retest lows set in March last year.  Very interesting times.

In surprise news which sent the pound sliding on Thursday, official figures showed that the Government borrowed £4.3 billion last month.

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HBOS says nationalisation a risk if Lloyds bid rejected

November 14, 2008 by · Leave a Comment
Filed under: Global News 

We it looks like this problem is still growing as this is being written and there is no end in sight.  The shareholders will approve the deal or they stand to get their equity wiped out.   Not sure what the bondholders think, they might prefer nationalisation if the government is going to make their investment whole again.  This should be interesting.

News:

HBOS Plc , Britain’s biggest home lender, could have to be nationalised if its shareholders do not vote for a proposed 5.7 billion pound takeover by Lloyds TSB, its chairman warned on Friday.

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Merrill Lynch switches billions in debt to Britain to avoid paying corporation tax for 50 years

August 17, 2008 by · Leave a Comment
Filed under: Industry News 

50 years sure does seem like a pretty big upside for taking huge losses over bad bets that were placed during our last financial cycle upswing.  We will want to follow up on this to see if anyone tries and challenge this type of tax treatment.

Investment bank Merrill Lynch may not have to pay UK tax for decades.  The Wall Street giant, which employs 5,500 in the City of London, could be eligible for a tax holiday of more than 50 years after making billions of pounds of losses on ‘exotic investments.’

The possibility of such a business escaping tax will astonish households struggling with their personal finances.

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